Bill Gates criticises anonymity behind cryptocurrencies

Bill Gates is not a fan of cryptocurrencies
Photo: (AP Photo/Ted S. Warren)

DURBAN - In a Reddit AMA (ask me anything) thread on Tuesday Bill Gates said that the anonymity behind cryptocurrencies is not "a good thing" according to MSN Money.

The Microsoft co-founder added that society benefits when governments can identify money launderers, tax evaders and the people funding terrorists.

The billionaire wrote "The main feature of cryptocurrencies is their anonymity. I don't think this is a good thing. The Governments [sic] ability to find money laundering and tax evasion and terrorist funding is a good thing".

Gates also said that cryptocurrency has caused the deaths of people in a fairly direct way, noting how easy it is to buy drugs online using digital currencies.

According to him, right now are being used to buy drugs like Fentanyl so it is rare technology that has resulted in deaths in a fairly direct way. He added that the speculative wave around ICOs and cryptocurrencies are very risky for people who go long.

One Reddit users responded to Gates saying that Fentanyl can be bought with cash. Gates defended his statement saying that yes anonymous cash can be used to for those kinds of things, but people have to physically be there to transfer the cash which makes things like kidnapping payments much harder.

It should also be pointed out that fans of cryptocurrencies believe that low-cost global money transfers and decentralisation of power are some of the more fascinating features of cryptocurrencies.

This means that the comments made by Gates are likely to be met with opposition in the cryptocurrency world.

There have also been other cryptocurrency critics from the business world including Dick Kovacevich, the CEO and chairman of the Wells Fardo said that he believes that bitcoin is a scam and pyramid scheme.

Warren Buffet in an interview with CNBC said that he does not understand cryptocurrencies and therefore stays away from them. He also said that cryptocurrency craze will have a bad ending.